Cloud & Infrastructure

Cannabis Growers Chase the AI Data Center Boom

Cannabis growers are pitching their buildings to AI buyers, but Kalamazoo’s moratorium and a C$25 million Canadian listing show the gap between property sales and operating data centers.

By Olivia Grant Edited by Samantha Reed Published: Updated:
Cannabis Growers Chase the AI Data Center Boom
Cannabis property owners are pitching sites to AI developers, but power access and permits can complicate conversion plans. Photo: Cannafornia / Pexels

Key Notes

  • Harbor Farmz withdrew its data-center sale listing after community opposition, according to Forbes.
  • Kalamazoo’s current moratorium runs until October 5, 2027, unless new regulations take effect sooner.
  • A Saskatchewan property is advertised for C$25 million, but its listing does not confirm an operating AI data center.

Some cannabis growers are trying to sell a different product to the AI industry: their buildings. Electricity connections, fiber and cooling equipment offer a possible route out of a difficult cultivation business, but they do not guarantee a working data center.

Forbes reported on October 21 that Michael Ward had sought an AI buyer for Harbor Farmz’s 32,850-square-foot facility in Kalamazoo, Michigan. Built for $20 million, the property had 1.5 megawatts of electrical capacity, with larger figures dependent on future expansion. Ward withdrew the listing in September after community opposition.

A moratorium changes the calculation

Kalamazoo’s current zoning code sets out a moratorium on accepting or processing data-center applications until October 5, 2027, or until new regulations take effect, whichever comes first. That is later than the August 2027 deadline cited in the Forbes report. The measure can also be extended.

The ordinance identifies concerns including noise, vibration, water use and backup generators. It says the city lacks development standards tailored to data centers. For a property owner, an existing industrial building therefore leaves a central question unresolved: when, and under what conditions, a new computing operation could secure approval.

A C$25 million pitch in Saskatchewan

Another property illustrates how explicitly the sales pitch has shifted. Colliers lists a site at 1 Plant Technology Road in Saskatchewan as “Prairie Data Center,” with an asking price of C$25 million. The listing, checked on November 11, advertises 130,134 square feet on 101.25 acres. Forbes identified the property as a former Aurora cannabis facility.

The broker promotes fiber connectivity of up to 10 gigabits per second, cooling capacity and building-management systems. Those are advertised features of a property for sale. The listing does not establish that an AI operator has completed a purchase, installed servers or begun serving customers.

The building is only the starting point

The distinction matters because a sale price and an operating business answer different questions. A buyer would still need to assess whether the available infrastructure suits its equipment and whether the proposed operation can meet local requirements. An expansion target should not be treated as electricity already available to run AI servers.

Backup power adds another layer. In California, for example, the Energy Commission explains that data centers generally rely on the grid while onsite generators provide emergency power. Those generators require permits to build and operate. Requirements vary by jurisdiction, but existing electrical connections alone do not settle every infrastructure question.

Community acceptance can be just as consequential. AIstify has reported on home-buyout offers tied to a noise dispute near xAI’s power infrastructure in Mississippi. For cannabis owners seeking an AI buyer, the next business may come with a new set of neighbors’ objections.

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